The Nigerian Electricity Regulatory Commission has released new rules to guide how third-party agents collect electricity bills.
The new guidelines aim to make the collection process more digital, transparent, and secure.
The directive, titled “Guidelines on Registration and Engagement of Third-Party Collection Service Providers”, was signed by NERC Chairman, Sanusi Garba, and takes effect immediately.
NERC said the rules are based on Section 226 of the Electricity Act 2023 and are meant mainly for Distribution Companies (DisCos) in states where electricity markets have not yet been set up.
This move supports the Federal Government’s push for a cashless economy and will help control how money from electricity sales flows through the Nigerian Electricity Supply Industry, NERC stated.
Under the new rules, DisCos are not allowed to use unlicensed agents to collect electricity bills. Only third-party agents who have proper permits from the Central Bank of Nigeria, are connected to the Nigeria Inter-Bank Settlement System, and follow tax regulations can now operate.
These Guidelines seek to provide clear guidance to DisCos on how to register third-party collection agents, what charges are allowed, and how to ensure transparency and accountability, the document stated.
The new policy also includes capped commission rates for the agents. For example, for USSD transactions under N5,000, the highest commission allowed is N20. Rural agents may charge up to 3.25 percent per transaction, but not more than N2,000. Industrial and commercial customers, known as Maximum Demand customers, will not pay any commission when paying their bills.
This new policy is an upgrade to NERC’s 2019 order that banned cash payments for big electricity users.
NERC said the aim is to make digital payments the standard across all platforms. These include USSD, Point-of-Sale machines, vending kiosks, mobile wallets, and online banking.
DisCos have 90 days to submit all current contracts with Collection Service Providers (CSPs) for approval. If they don’t, they could face sanctions.
NERC added that no CSP shall be engaged by a Disco without the required CBN permit. All third-party collection agreements must be approved and registered before starting operations.
It also said all DisCos must use cost-effective and efficient channels for collections. All contracts must clearly show what is expected from the collection agents. Transaction account details must be included and approved by NERC. Collections from MD customers must not include commission charges.
NERC confirmed that the current approved rates will remain in place unless changed in the future. It stressed that all contracts currently in place must be updated to meet the new rules within 90 days.
